Harmony Gold Mining Expands Copper Portfolio with $1bn Acquisition

Harmony Gold Mining has agreed to acquire MAC Copper, the owner of the CSA Copper Mine in Australia, for $1.03 billion. This move aligns with Harmony Gold’s strategy to strengthen its portfolio by adding significant copper assets. The CSA Copper Mine, located 700 km from Sydney, produces high-grade copper. It has a promising reserve life of over 12 years.

The acquisition also includes the Merrin Mine, which is expected to increase both copper and zinc production. In fiscal year 2024, CSA Copper Mine produced more than 41,000 tonnes of copper. The production came with a C1 cash cost of $1.92 per pound. Furthermore, Harmony Gold Mining will gain control over 756 km² of tenements owned by MAC Copper. This will provide opportunities to extend CSA’s operational life.

Key Terms and Benefits of the Acquisition

MAC Copper’s shareholders will receive $12.25 per share. This represents a 32.1% premium over the company’s 30-day average price as of May 23, 2025. The MAC Copper board unanimously approved this offer. Key stakeholders holding 20.1% of the shares have expressed strong support for the transaction.

MAC Copper’s CEO, Mick McMullen, emphasized that the deal provides shareholders with a compelling opportunity to realize an attractive cash value. He also highlighted recent developments, including a larger reserve life. McMullen noted the upcoming Merrin Mine development. This is expected to boost copper production and gain attention from Harmony Gold Mining enthusiasts.

Harmony Gold Mining CEO, Beyers Nel, stated that this acquisition aligns perfectly with Harmony’s core investment strategy. The strategy targets value-accretive acquisitions and high-quality copper and gold assets. Harmony believes the CSA Copper Mine, with its stable resources and future exploration potential, fits with the company’s goal to diversify. They aim to become a low-cost global mining leader.

SuperMetalPrice Commentary:

This $1.03 billion acquisition marks a significant step in Harmony Gold Mining’s strategy. They aim to diversify their production portfolio and reduce operational risks. The company is clearly positioning itself to capitalize on the growing demand for copper. This is especially relevant in the context of the energy transition and infrastructure development. The CSA Copper Mine has a solid production base and exploration potential. These factors enhance Harmony’s standing in the copper mining industry. As Harmony Gold Mining continues to expand its footprint in copper, it will be interesting to see how they integrate these assets. The aim is to drive long-term value through strategic capital allocation and operational improvements.